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Sunrise Market Commentary - Fixed Income: Hunt for yield - Following horrible French and German PMI readings, core bonds set new highs. The German 10-yr yield set an all time low at 1.35% and this initiated for the first time a “hunt for yield” trade into Belgian, Austrian and French bonds. The trade was most visible at the longer end of the curve, resulting in a bull flattening. - Currencies: Another day, another new correction low for EUR/USD - On Thursday, the decline of EUR/USD was extended. However, given the flood of negative news, the damage could have been worse. EUR/GBP struggles to hold above the 0.8000 barrier. Today, the calendar is thin. However, one can expect investors to stay cautious going into a long weekend. This is no help for the euro The Sunrise ...

Today's Comment Yesterday we stated that a Chinese PMI figure below 49 would have a negative effect on the financial market. The Chinese PMI came out at 48.7, i.e. a fall from 49.3 last month … the effects of the fall is very evident in the FX market, particularly in respect of commodity-related currencies. This supports our scenario that the economy (global) is lagging a bit behind here in the second quarter, which can particularly be attributed to the renewed outbreak of the European debt crisis. The PMI index has now been below 50 for seven months on end. This is very concerning, particularly because many investors maintain their positive investments as they expect that China will be in for a soft landing. If the landing is to be soft, the Chinese PMI figures will have to increase ...

Sunrise Market Commentary - Fixed Income: Risk off pushes German bond yields to new lows - Risk off sentiment pushed core bonds higher and non-core bond yield spreads re-widened substantially. The Summit didn't bring new information, but another hole found in Spain's regions' budgets might get attention today. - Currencies EUR/USD cedes the 1.2624 support - On Wednesday, the EMU debt crisis was again omnipresent. Markets feared that the EU leaders wouldn't be able to take decisive action to address the debt crisis. Extreme risk aversion pushed EUR/USD to a new low for 2012. The losses of EUR/GBP were more contained, as poor UK retail sales and rather soft BoE minutes kept the door open for more policy stimulation. The Sunrise Headlines - In the final hour of trading, US ...

Sunrise Market Commentary - Fixed Income: Global core bonds take a breather - Investors remained mostly sidelined in an uneventful session on Friday. The G-8 meeting stressed the need for growth, besides fiscal consolidation and sees Greece staying inside EMU. This shouldn’t surprise markets today. With a razor thin calendar, trading might start the week in a lackluster mode. - Currencies: Euro succeeds short squeeze - On Friday, the decline of the euro halted and EUR/USD succeeded a cautious rebound, even as uncertainty on the EMU debt crisis persisted. Technical considerations will also dominate trading today as the G8 meeting provided no high profile measures to address the debt crisis. The Sunrise Headlines - US Equities rose for a second consecutive session on ...

The Weekly Bottom Line : 19/05/2012 HIGHLIGHTS OF THE WEEK United States - Global economic concerns ratcheted up this week. Widespread discussion of a Greek exit continued, Spanish banks faced rating downgrades and periphery sovereign debt yields moved higher. - Financial markets have responded to these global worries with increased risk aversion. The S&P is poised to end the week 3% lower, and 10-year treasuries are yielding just 1.7%. - U.S. economic data has proved somewhat more encouraging, but growth is still struggling to breakout beyond a moderate pace. This has kept the possibility of additional monetary stimulus alive even if the threshold remains quite high. Canada - Recent economic indicators are showing a resurgence of strength in the Canadian economy. Strong ...

EUR/USD The single currency spirals lower after yesterday’s break below 1.2800 handle and longer-term bull trendline at 1.2770 and today’s loss of the last obstacle at 1.2700, towards 1.2622, January’s yearly low. Negative sentiment keeps the pair under heavy pressure and despite short-term studies being at their extreme levels, the price action continues to increase the pace of descending. Break below 1.2622 to open 1.2586 Aug 2010 low next, with 1.2000/zone expected to come in short-term focus. Initial resistance lies at 1.2720, with more significant barriers at 1.2800/15 and 1.2868. Res: 1.2700, 1.2720, 1.2800, 1.2815 Sup: 1.2622, 1.2586, 1.2550, 1.2500 GBP/USD The pair accelerated losses after losing key supports at 1.6050 and 1.6000, with break below 55 day MA at 1.5959, looking ...

(Reuters) - Copper moved slightly higher on Tuesday helped by brisk manufacturing data in top metal consumer China and in the United States but concerns about the euro zone crisis and lower expectations of U.S. monetary stimulus kept a lid on prices. Trading was thin with many markets shut for the May Day holiday, including China and parts of Europe, limiting the market impact of data showing a sustained expansion in China's factory sector. Three-month copper on the London Metal Exchange was at $8,445 by 1522 GMT, after hitting a session high of $8,454. It closed at $8,400 on Monday. China's official purchasing managers' index (PMI) rose to a 13-month high of 53.3 in April, signaling the world's No. 2 economy may be recovering from a first-quarter trough. China consumes about 40 ...

(Reuters) - Copper dipped on Tuesday as brisk manufacturing data in top metal consumer China and a softer dollar failed to offset concerns about the fragile U.S. economy and the euro zone crisis. Trading was thin with most Asian markets shut for the May Day holiday, including China and parts of Europe, limiting the market impact of data showing a sustained expansion in China's factory sector. Three-month copper on the London Metal Exchange was down 0.1 percent at $8,391 a tonne by 1058 GMT, after hitting a session high of $8,450. It closed at $8,400 on Monday. China's official purchasing managers' index (PMI) rose to a 13-month high of 53.3 in April, signaling the world's No. 2 economy may be recovering from a first-quarter trough. (nL4E8G10UO) "I'm not sure there was enough in it to ...

Worries about high debt levels in Spain hurt the euro on Thursday, driving it to a three-week low against the dollar and causing the Swiss National Bank to step in as the franc broke through a ceiling the Swiss central bank set against the common currency last year. Spanish borrowing costs rose as investors, following a poor debt auction on Wednesday, became increasingly nervous about the country's ability to meet budget targets that could mark another escalation of the euro zone debt crisis. A U.S. government report showing the number of Americans lining up for new jobless benefits fell to the lowest level in nearly four years last week only added to the dollar's allure against the euro. The U.S. outlook was in sharp contrast with Europe and Britain where separate reports ...